SBM Offshore Inks $400M Refinancing Deal for FPSO Cidade de Paraty

SBM Offshore has signed a non-recourse sale and leaseback financing agreement for Cidade de Paraty floating, production storage and offloading (FPSO) unit, for the total amount of $400 million and with a tenor of eight years.

The transaction is expected to be completed before the end of April 2025, following the fulfillment of certain closing conditions.

FPSO Cidade de Paraty is owned by a special purpose company owned by affiliated companies of SBM Offshore (63.125%) and its partners (36.875%). Under the terms of the agreement, the special purpose company will transfer the ownership to four Chinese leasing companies.

SBM Offshore and its partners continue to operate and maintain the asset until the end of the initial charter and operate contracts for the remaining period of eight and a half years.

“We are very pleased to have signed the refinancing of FPSO Cidade de Paraty, the company’s first sale and leaseback financing.

“With this strategic transaction we are demonstrating once again the value of our unique lifecycle offering not only from an execution and operation standpoint but also in our ability to continue to provide innovative long-term financing solutions for our clients. We appreciate the continued support from our Chinese leasing partners,” said Douglas Wood, CFO of SBM Offshore.

Cidade de Paraty FPSO was the first of a series of four pre-salt FPSOs for SBM Offshore’s client Petrobras. 

The FPSO is SBM Offshore’s ‘Generation 3’ design and has topside facilities of around 14,000 tons to process 120,000 bpd of oil, associated gas treatment for 5,000,000 Sm3/d with compression and carbon dioxide removal and a water injection facility for 150,000 bpd. It is moored at 2,100 metres water depth.